Chinese chip firms Denglin, Xinde make mixed Hong Kong market debuts
Chinese chip firms Suzhou Denglin Technology and Jiangsu Xinde Semiconductor Technology made mixed trading debuts in Hong Kong after raising a combined HK$2.36 billion in IPOs. Denglin opened below its offer price while Xinde opened higher, reflecting divergent market reception.
Chinese chip firms Suzhou Denglin Technology (9917) and Jiangsu Xinde Semiconductor Technology (7672) made mixed Hong Kong trading debuts on Tuesday after raising a combined HK$2.36 billion in initial public offerings, according to Reuters.
AI chip designer Denglin opened at HK$229, 0.9 per cent below its offer price of HK$231, and was last trading at HK$222.40. In contrast, semiconductor packaging firm Xinde opened 20.5 per cent above its offer price of HK$8.88 at HK$10.70 and was last at HK$12.02.
Hong Kong's Hang Seng Index rose 0.4 per cent, while the Hang Seng Tech Index was up 0.8 per cent.
Denglin raised HK$1.41 billion after pricing its offering at the bottom of the marketed range. Its retail tranche was 2.11 times subscribed, while the international tranche was 1.34 times covered. The company makes graphics processing units (GPUs), chips used in artificial intelligence computing. It plans to spend most of the IPO proceeds to upgrade its existing GPU products and develop new products and software tools.
Xinde raised HK$946.3 million by selling 106.56 million shares at HK$8.88 each, near the bottom of its HK$8.60 to HK$9.60 range. Its retail tranche was 9.84 times subscribed and the international offering was 1.13 times covered. Xinde provides chip packaging and testing services. It plans to use most of the proceeds to expand production capacity and develop advanced packaging technology.